Japanese industrial group Sumitomo Corporation and South Korean state-owned Korea Electric Power Corporation have recently reached an agreement for the purchase of the right to operate and own the Shuweihat S3 power plant project in the United Arab Emirates (
UAE), and accordingly have concluded a long-term power purchase agreement with Abu Dhabi Water & Electricity Authority (ADWEA).
The consortium will construct a gas-fired combined cycle power plant, with a capacity of 1,600 megawatts, adjacent to the Shuweihat S1 plant, which is partly owned by Sumitomo.
Construction of the new power plant will start in March 2011 and commercial operations are scheduled from March 2014. All generated electricity will be purchased by ADWEA under the 25-year long-term power purchase agreement.
The total project cost will amount to approximately $1.5 billion, including the cost of plant construction.